A company makes a $5 profit on each non-faulty product it sells. Approximately 2% of the products manufactured are faulty, with no way to discover which ones are faulty before delivery. If replacement-and-repair costs for the faulty products are $100 each, what is the profit per item?

Question

triciaal · Answer

2% faulty means 98% good 
let the total manufactured = M, faulty = x and good = y then 
x + y = M 
 M *5 -  0.02 M*100 = net  income

triciaal · Answer

profit per item = net income / manufactured 

how many items were manufactured or what was the income?